From day to day groceries to basic necessities, electronics, pet supplies and more – online shopping is evidently increasing and many people choose to simply order online rather than stepping out to buy anything. But, as demand for online purchases increased, it also increased anxiety to add to the frivolous frauds online you’ll see the ecommerce ecosystem seeing a shift back to choosing cash on delivery much more than they prefer online payments. Not having to pay until it actually gets delivered removes anxiety around paying before a purchase.
What is COD?
In this method, the customer chooses to pay after the goods are delivered instead of paying for it in advance. So, if the product is undelivered or is not paid for, it gets returned to the brand or the store.
So, why is COD important for eCommerce?
Almost 83% of consumers prefer to pay after they receive the products. 72% of customers from major cities and 90% of those from smaller towns choose COD over any other form of payments. Reasons – fear of online scams, cash payments are more familiar, ease of transactions, lack of secure payments, no dependency on cards. COD offers online shoppers comfort and reassurance.
Not only from a customer’s perspective, but also from a business perspective, COD is preferred. Here are a few advantages for businesses that offer COD as an option for online shopping:
Impulse purchases lead to increased sales
COD makes the checkout process at least two steps faster. People who browse online stores on the go, want to quickly complete the checkout without worrying about the credit card details or the net banking password etc. COD offers ease and convenience for such impulse purchasers.
Building customer loyalty and trust
When you don’t ask for upfront payment, you are building trust with the customer. They understand that you are focused on first fulfilling the order before getting paid for it. This is a very simple emotion, but plays a big role in building customer loyalty.
With cash on delivery however, the number of fake orders increased and products are returned after having taken the trouble to ship them to the customers. Returning orders need to be analysed and tried to be minimized.
So do businesses need COD?
If you are selling online, it’s a good idea to offer options for customers to pay. So, if you are in any doubt, the answer is yes – along with other options Cash on Delivery is a great choice to have on your online store.